Chernigivske Khimvolokno Joins PFTS.

Chernigivske Khimvolokno (CHIM) will sign an agreement today to list its shares on the PFTS, according to a joint press release. The stock will initially be quoted in the third tier. According to the announcement, this local listing is one of the steps the company will take on its way towards a public offering on a western exchange. Vladimir Nesterenko: Chernigivske Khimvolokno is the country’s biggest producer of synthetic fiber and yarns and the only producer of cord for tires. It is said to be owned by the founders of Ukrsibbank and the company’s free float is about 12.5%. The company has demonstrated strong growth over the last three years, increasing its sales by 70-80% yearly. Cord production increased by 43.5% yoy in 2005, to 25.4 ths sq.m, fiber production – by 46.7%, to 21.7 ths mt. Driven by remarkable growth of its output volumes, as swell as higher output prices, the company boosted net sales in 2005 by 82.0%, to $73.8m, and posted EBITDA of $6.5m (8.8% margin) and net income of $1.2m (1.7% margin). The company’s strong growth is continuing this year: cord production volumes were up 101.7% yoy in Jan-May while fiber production increased by 30.5%. 1Q06 sales were up 19.3% yoy.